TL;DR
- Consensys, creator of the MetaMask wallet, will cut 20% of its workforce, affecting over 160 employees due to economic factors and legal costs.
- Joe Lubin, the company’s CEO, criticized the “abuse of power” by the SEC and the lack of response from Congress regarding regulatory issues affecting the crypto industry.
- Despite facing legal challenges, the company seeks to transform into a decentralized “network state,” aligning with the principles of blockchain technology.
Consensys, the company behind the popular MetaMask wallet, has announced a 20% reduction in its workforce, which equates to over 160 affected employees.
This decision, communicated by founder and CEO Joe Lubin through a blog, responds to a combination of adverse factors including the macroeconomic context and high legal costs stemming from its conflicts with regulators, particularly the U.S. Securities and Exchange Commission (SEC).
Lubin expressed concern about the impact that the SEC’s actions have had on the crypto industry, arguing that multiple legal cases, including those involving Consensys, have led to the loss of valuable jobs and investment opportunities.
The Ongoing Abuse by the SEC
He criticized what he considers “abuse of power” by the SEC and pointed out the lack of response from Congress to address these issues. This view reflects a common sentiment among cryptocurrency companies that feel the current regulation is unclear and unfavorable for the development of the sector.
Founded in 2014 in Brooklyn, Consensys has established itself as an incubator for projects on the Ethereum blockchain, which is currently one of the most important in the world. Its flagship product, MetaMask, provides a decentralized way to manage tokens in the Ethereum ecosystem and access various related services. In recent years, the company has relocated its headquarters to Texas, where it has focused on developing infrastructure tools to support Ethereum’s growth. However, this effort has faced challenges due to ongoing regulatory uncertainty.
Consensys Battle with the SEC
Lubin sued the SEC in April, seeking to establish that Ethereum is not classified as a security, a position supported by numerous lawyers in the crypto industry. Although a court dismissed this lawsuit, a related case brought by the SEC is still ongoing. Despite the challenges, Consensys has managed to achieve at least one legal victory by forcing the SEC to scale back its investigation into various companies and developers linked to Ethereum.
Regarding the layoffs, Lubin described them as a “tough but prudent decision” to streamline the company’s operations. This restructuring will affect all departments, including business development and products. The firm has promised to provide fair severance, professional support, and extended health benefits to the affected employees.
Looking ahead, Lubin indicated that Consensys will focus on transforming the company from a traditional entity into a decentralized “network state,” aligning with the fundamental principles of blockchain technology
